CORPORATE PROFILE February 2019
CAUTIONARY STATEMENT Cautionary Note Regarding Forward-Looking Information : This Presentation contains ‘‘forward -looking information’’ which may include, but is not limited to, statements with respect to the future financial or operating performance of Ram River Coal Corp. (“Ram Coal” or the ‘‘Company’’) and its mineral projects; the future prices of metals; future demand for seaborne metallurgical coal; the anticipated results of exploration activities; the estimation of mineral resources; the realization of mineral resource estimates; capital, development, operating and exploration expenditures; costs and timing of the development of the Company’s mineral properties; timing of future exploration; requirements for additional capital; government regulation of mining operations; availability of port capacity at the Ridley Coal Terminal; anticipated results of economic and technical studies; environmental matters; reclamation expenses; title disputes or claims; limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Often, but not always, forward-looking information can be identified by the use of words and phrases such as ‘‘plans’’, ‘‘expects’’, ‘‘is expected’’, ‘‘budget’’, ‘‘scheduled’’, ‘‘estimates’’, ‘‘forecasts’’, ‘‘intends’’, ‘‘anticipates’’, or ‘‘believes’’ or variations (including negative variations) of such words and phrases, or state that certain actions, events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, ‘‘might’’ or ‘‘will’’ be taken, occur or be achieved. Forward-looking information is based on the opinions and estimates of management as of the date such statements are made and is based on information currently available to management and is subject to a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. In particular such risks include: general business, economic, competitive, political and social uncertainties; results of exploration activities are lower than expected; the future prices of coal; failure of plant, equipment or processes to operate as anticipated; unanticipated events relating to health, safety and environmental matters, adverse weather condition, labour disputes and other operational risks of the mining industry; political stability of the jurisdictions in which the Company operates; availability of port capacity; unanticipated delays in obtaining governmental approvals or financing or in the completion of future studies, development or construction activities; actual costs of exploration are higher than expected; studies do not remain within budgeted amounts; and regulatory and legal requirements required for exploration or development activities change in an adverse manner. Forward-looking information contained herein is made as of the date of this Presentation and the Company disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, potential investors should not place undue reliance on forward-looking information. This Presentation does not constitute an offer to sell, or solicitation of an offer to buy, any securities by any person in any jurisdiction in which it is unlawful for such person to make such an offering or solicitation. No representation or warranty, express or implied, is made as to the accuracy or completeness of the information set out herein, and nothing contained herein is, or shall be relied upon, as a promise or representation, whether as to the past or future. This Presentation includes industry data and forecasts obtained from independent industry publications, market research and analyst reports, surveys and other publicly available sources. Although the Company believes these sources to be generally reliable, market and industry data is subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties inherent in any statistical survey. Accordingly, the accuracy and completeness of this data is not guaranteed. The Company has not independently verified any of the data from any such third party sources referred to in this Presentation nor ascertained the underlying assumptions relied upon by such sources. Mineral resources are not mineral reserves and do not demonstrate economic viability. This Presentation includes and relies on information from the Technical Report Aries Coal Project (the “Technical Report”) prepared by Norwest Corporation (“Norwest”) dated April 20, 2017 and prepared in accordance with the Canadian Securities Administrator's National Instrument 43-101 - Standards of Disclosure for Mineral Projects (”NI 43-101 ”) . There is no assurance that the quoted resource estimate reported in the Technical Report; in whole or in part, will ever become economically viable. Investors are cautioned not to assume that any part or all such mineral resource estimates will ever be converted into mineral reserves. This Presentation also includes and relies on information contained in an additional, subsequent Aries Project PFS Optimization report prepared by Norwest and dated August 3, 2017 (the “Optimization Report”) . Both the Technical Report and the Optimization Report may be viewed on the Company’s website wwwramcoal.com. The Qualified Person who has reviewed the technical content, except for the below referenced Scurry Historical Estimate, contained in this presentation and confirmed that it accurately reflects the information in the Technical Report and in the Optimization Report, is Sean Ennis P.Eng., a qualified person under NI 43-101. Caution – Non- Reliance on Scurry Historical Estimate (non 43-101 compliant) - Between 1971 and 1974, seventy two drill holes were completed by Consol of Canada Inc. within the Scurry property area. In 2015, King Bay West Inc. utilized this data plus bedding measurements, geology maps and geologic modeling software to determine the above noted Scurry Historical Estimate. The key assumptions for the Scurry Historical Estimate are: (i) Geology Type- Moderate; (ii) Maximum Depth of Strip Ratio- 600m or 20:1; and (iii) the allowable distance between data points (2400m). The Scurry Historical Estimate relies on principles from the 1989 guidelines from the Geological Survey of Canada (GSC ) 88-21 guidelines “A Standardized Coal Resource/Reserve Reporting System”. The historical estimate does not use the categories set out in NI 43-101. The key difference is that under the GSC 88-21 guidelines , a coal deposit definition is different for coal properties than for other types of geologic deposits as both “deposit type” and “geo log y type” criteria are applied in classifying coal deposits as reserves or resources and the confidence categories are linked to a range of search radii from known data points (i.e. drill holes or samples) Therefore, the Scurry Historical Estimate cannot and should not be relied upon. However, this resource estimate may be relevant because the Scurry property forms part of the same geological trend encompassed by the Ram River property. Further drilling and analysis would be required to upgrade or verify the historical resource estimate as current mineral resources of reserves. Ram Coal is unaware of the existence of any technical report prepared in connection with the Scurry Historical Estimate . Within the meaning of NI 43-101, a Qualified Person has not done sufficient work to classify the Scurry Historical Estimate as current mineral resources or mineral reserves. Ram Coal is not treating the Scurry Historical Estimate as current mineral resources or mineral reserves (within the meaning of NI 43-101). 2
THE INVESTMENT CASE Premier Metallurgical Coal Deposits Aries project 100% interest in the Ram River property – one of the largest undeveloped Met Coal assets in North America with a combined M&I resource of 413Mt South Block 413 Mt M&I Aries Project contains 220Mt Measured and Indicated Run of Mine Reserve totals ~183 Mt Proven and Probable South Block (excluded from Aries Project economics) contains an additional resource of 193Mt Measured and Indicated with another 105Mt inferred Aries Project Pre-Feasibility Study Demonstrate Strong Economics** NPV of $843M USD (8% discount) IRR of ~24% Economics considers only Cashflow of $3.6B USD Payback period of 4 years ~52% of the Ram River Property Measured and Indicated Resource Typical Increase in Valuation throughout Development cycle CURRENT STATE Prefeasibility / Pre-Permitted Stage Construction / Ramp-up P/Nav ranges between 0.1x – 0.3x P/Nav ranges between 0.5x – 0.8x Feasibility / Fully Permitted P/Nav ranges between 0.3x – 0.6x ** Developed using 2017 $CDN and converted into $USD using a $0.75 USD : $1 CDN ratio. A long term coal price of $165/tonne with a 13% discount for Coal quality 3
Recommend
More recommend
